Question 7 Ptd Ltd. is a company that makes upmarket timber-based products in Brisbane. It is considering replacing 5 employees with a new machine that costs $350,000. The machine will be depreciated using the prime cost method over five years and have a terminal book value of $5,000. The market value of the machine will be $50,000 in five years. Each of those employees is currently paid an annual salary of $20,000. If bought, the machine will immediately reduce the company's net working capital by $35,000, but this amount of net working capital will have to be fully replaced once the machine is sold. The company's cost of capital is 15%. Ptd Ltd. is subject to a corporate tax rate of 35%. Answer the following questions: a) Calculate NOPAT (Net Operating Profit After Tax). b) Calculate NCF (Net Cash Flows). c) Calculate NPV (Net Present Value). d) Should Ptd Ltd. buy the machine? Instructions: Round your final answers to 2 decimal places. Use Accounting Flows to calculate NOPAT. Use Flows to calculate NCF. Parts c) and d) can be done right at Cash Flows. . . . Question 7 Ptd Ltd. is a company that makes upmarket timber-based products in Brisbane. It is considering replacing 5 employees with a new machine that costs $350,000. The machine will be depreciated using the prime cost method over five years and have a terminal book value of $5,000. The market value of the machine will be $50,000 in five years. Each of those employees is currently paid an annual salary of $20,000. If bought, the machine will immediately reduce the company's net working capital by $35,000, but this amount of net working capital will have to be fully replaced once the machine is sold. The company's cost of capital is 15%. Ptd Ltd. is subject to a corporate tax rate of 35%. Answer the following questions: a) Calculate NOPAT (Net Operating Profit After Tax). b) Calculate NCF (Net Cash Flows). c) Calculate NPV (Net Present Value). d) Should Ptd Ltd. buy the machine? Instructions: Round your final answers to 2 decimal places. Use Accounting Flows to calculate NOPAT. Use Flows to calculate NCF. Parts c) and d) can be done right at Cash Flows